U.S. investors are returning to Japanese stocks as confidence recovers from the initial shock of the Middle East crisis, according to Goldman Sachs 91AV原创 chief Japan equity strategist.
The shift, driven partly by a stabilizing yen, has spurred U.S. capital inflows into the tech-heavy Nikkei 225 Stock Average, as reflected in its divergence from the Topix, said Bruce Kirk. With Japanese policymakers unlikely to tolerate a significant yen decline past current levels near 160 per dollar, unhedged U.S.-based investors may be more willing to buy Japanese stocks, he added.
“Japan actually looks like it’s in a reasonably solid position,” Kirk said in an April 20 interview. “The buying comes in very very quickly” once the market shifts its focus from near-term to mid-term, he said.
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